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Governor Mills presents budget proposal to state legislature

The state’s current $8 billion budget expires on June 30th.
Maine State House
Maine State House(WABI)
Published: Jan. 8, 2021 at 12:20 PM EST
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AUGUSTA, Maine (WABI) - Governor Mills shared her two-year budget plan with the state legislature Friday.

The governor is proposing $8.4 billion in spending when the new fiscal year begins on July 1, which is a less than 1% increase from the current budget.

Mills said her budget is $300 million less than current revenue projections and said her plan would fulfill the constitutional requirement for a balanced budget.

”State government can not be all things to all people all the time, nor can it solve all problems or address all needs of all people of the state, but during emergencies such as this pandemic the people need to depend on us to protect their children, secure their health care, to safeguard educational and vocational opportunity and to protect our most vulnerable citizens,” said Mills.

She added her budget would add about $61 million to the state’s “rainy day” fund, bringing its total to a record $320 million.

The proposal keeps Maine’s tax rates the same. It does not dip into the rainy day fund, either.

Mills’ budget aims to rebuild public health infrastructure and protect investments in health care and education.

It gives $45 million to support K-12 education.

”Educators and school staff from bus drivers and janitors to superintendents and administrators all up an down the line have really pivoted in creative ways to try to keep our students on track and this budget continues on that path to help the state fulfill its share of the educational funds,” Mills said.

The state’s current $8 billion budget expires on June 30th.

The Governor is also presenting her supplemental budget proposal for Fiscal Year 2021.

The Mills administration credits the $7.6 billion in federal pandemic relief for helping to balance revenue short falls.

The legislature will look through the budget after Friday and make amendments prior to voting.

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